The Bank of Canada (BoC) has published a new staff note on decentralized finance (DeFi), providing investors with an overview of the growing sector and highlighting the challenges and risks involved with its use and integration into the broader financial system.
“DeFi is the provision of financial services without relying on traditional intermediaries,” the note said. It “operates within a multi-layered structure” composed of the bottom (or settlement) layer, where the blockchain records and settles transactions, and the asset layer, which includes native tokens.
Source hereI read the whole news, and it seems that the BoC just came to know about DeFi and what the pros and cons of it are. I mean, after all these years, they started to think about it now. Like the way they are writing these basics of DeFi, it represents that they are still skeptical about adopting it or that they might just be educating others. Like many newbies do here (learn and then share what they learn, even pros do that).
Well, after some digging, I came to know that they have started to take an interest in DeFi in 2022, and they warned people about the scams of DeFi while covering the CATPS (crypto asset trading platforms) registered in Canada.
Well, overall, it is good for them and the overall market because many countries take bold action against crypto, and Canada is no doubt one of them, like the US and UK, and Canada wants to do the same with crypto as the US and UK have, but due to the economic situations it has been facing, I don't think it will have as much impact on the market as others. Overall, it will definitely increase the adoption rate when those dudes, who want to get guidance from the governments only and only trust them and don't do anything outside the circle, might not adopt these technologies.
PS: try to add something valuable from your side too, rather than just copy pasting the few lines of news here, add your words.
